The Economic Impact of Declining Workforce Participation Among Mothers in the U.S.

As of February 2025, the labor force participation rate for women in the United States stands at 57.5%, a slight drop from 58.0% five years earlier. Amid ongoing discussions surrounding inflation and infrastructure, the plight of working mothers has been largely overlooked, reflecting an urgent but unresolved crisis impacting the economy.

The Importance of Women in the Workforce

Sheryl Sandberg has articulated the economic potential at stake, stating, “The best way to have a strong economy is to unlock the full potential of women in our workforce.” She projects that if the workforce participation of American women aligned with the highest levels in comparable nations like Canada and France, around 7 million additional women could enter the labor market, potentially catalyzing up to 4.2% growth in the economy. The recent decline in mothers’ workforce involvement threatens this possibility, signaling serious repercussions for GDP growth, family mobility, and national competitiveness.

A Crisis Origins in 2020

The initial impact of the COVID-19 pandemic in early 2020 was particularly deleterious for women, who exited the workforce in greater numbers than men due to increased caregiving responsibilities, school closures, and significant weaknesses in childcare infrastructure. Data from the Bureau of Labor Statistics reveals that mothers suffered a disproportionate share of job losses and withdrew from the workforce in unprecedented numbers.

Despite the easing of some pandemic restrictions, many of these mothers have not returned to full-time positions. Some have opted for part-time roles, while others have chosen entrepreneurship, with many still engaging in unpaid caregiving responsibilities at home. These trends highlight ongoing structural challenges, including unaffordable childcare options, sparse workplace flexibility, and social policies that do not adequately support modern parenting realities.

Mid-Sized Cities Are Impacted the Most

While major metropolitan areas like New York and Los Angeles receive significant attention in discussions about labor force trends, the economic impacts of mothers leaving the workforce are particularly pronounced in mid-sized American cities such as Greensboro, North Carolina, and Chattanooga, Tennessee. These cities, which comprise a substantial percentage of the nation’s population and GDP, rely heavily on every worker, taxpayer, and consumer.

The exit of working mothers from these communities represents not only a failure of policy but an observable shift in economic vitality. It means the loss of future homeowners, entrepreneurs, civic leaders, and financial contributors. The reduction in available workers leads to shrinking local economies, a decline in tax revenues, and diminished demand for goods and services, creating a cyclical erosion of community-based economic development.

Sectors in Crisis

Industries traditionally driven by women, such as healthcare, education, and childcare, are currently facing significant strain. Hospitals are struggling to fill nursing and administrative positions, and many school systems are experiencing high turnover rates. This instability results in larger class sizes, diminished personalized learning, and increasing burnout among existing staff.

The childcare sector is perhaps the most severely affected, with a decline in enrollment and chronic staffing shortages forcing many centers to reduce operating hours or close entirely. This exacerbates the existing childcare crisis, creating a feedback loop: without accessible childcare, mothers find it increasingly challenging to return to work, even when they desire to do so.

An Economic Emergency, Not Just a Gender Issue

This issue extends beyond gender discrimination; it is an economic emergency that demands attention. The stagnation in the U.S. labor market is not indicative of a lack of willingness among women to work, but rather a reflection of the unsustainable conditions that inhibit their participation.

Consequences of Inaction

If the U.S. continues to neglect the growing trend of mothers leaving the workforce, it risks sacrificing trillions of dollars in untapped economic growth and allowing the foundational elements of local economies to deteriorate, particularly in mid-sized cities. These areas could transform into cautionary tales of what occurs when an economy fails to serve the individuals who sustain it.

The choice is clear: the United States can either invest in essential policies and infrastructure that empower mothers to participate in the workforce—such as affordable childcare, flexible work arrangements, and paid parental leave—or accept the stagnation that accompanies their ongoing exit.

The future of American productivity, equity, and prosperity hinges on recognizing the roles of working mothers as vital contributors to our national economy, not just caregivers.